The management of financial fraud in publicly traded companies is a critical issue affecting market stability and investor confidence. Recent regulatory actions underscore the urgency of addressing these challenges. Financial fraud not only distorts the economic order of markets, but also causes significant losses to investors through misleading financial statements and misallocation of resources. Effective cooperative governance is critical to curbing these harmful practices and safeguarding economic integrity. This study examines the root causes of financial fraud and proposes practical strategies for improving corporate governance and risk management in listed companies.